V
eterans today face a tougher housing market than a decade ago, yet new initiatives and knowledgeable agents can still help many reach the closing table.
**Key Findings**
- A recent Redfin study shows only about 22 % of U.S. homes are affordable for a typical VA‑loan borrower.
- Conventional‑loan households have a slight edge (≈23 %), while veterans using conventional loans can afford roughly 27 % of listings.
- The gap widens because VA borrowers often forgo a down payment, resulting in larger loans and higher monthly payments that erode affordability.
**Historical Context**
In 2015, over half of all listings (53 %) were within reach for VA borrowers, and 57 % for conventional borrowers. Today, median home prices have doubled, while veteran incomes have risen only 48 %, pushing many out of the market.
**Closing‑Cost Challenges**
Even when a veteran qualifies for a mortgage, the upfront cash needed for closing can deplete savings. NewDay USA’s “NewDay Home” product lets qualified veterans finance closing costs over time, with no interest if repaid within a year, enabling them to compete with all‑cash buyers. The company aims to place one million veterans in homes. Other programs, such as Soldier Next Door, offer direct cash grants and down‑payment assistance.
**The Role of Real‑Estate Agents**
Agents who understand VA loan nuances and veteran‑specific programs can guide clients through the complex process. Many veterans—and even industry professionals—are unaware of the full benefits of VA loans. By staying informed and partnering with experienced lenders, agents can tap into the veteran buyer segment, which still represents about one in ten homebuyers nationwide.
**Policy and Community Solutions**
Long‑term affordability will require coordinated action from policymakers, developers, and local communities. Meanwhile, veteran‑focused programs and proactive agents can lower entry barriers and help service members secure homes in today’s high‑price market.
